USDCHF Resumes Upside Momentum

USDCHF Analysis – Price Breaks Above 0.88180 Resistance Level

USDCHF resumes upside momentum. After spending the last few days in a sideways consolidation phase, the USDCHF exchange rate has resumed its upward move. On the daily chart, bulls breached the key 0.88180 resistance level on the back of renewed buying interest. 

USDCHF Price Zones

Resistance Zones: 0.88990, 0.88180 
Support Zones: 0.85490, 0.83510

The price action over the past month highlights the bull’s consistent presence after securing support near 0.83510 levels in January. While sellers attempted a pullback in late January, buyers defended the 0.85490 area and steered the pair northwards.
 
As per technical indicators, the stochastic oscillator has started advancing into overbought territory, underscoring the underlying bullish tone. If buyers continue to defend the 0.88180 breakout point on declines, it could ignite stronger gains toward the crucial 0.88990 resistance level. 
 
From a longer-term perspective, USDCHF remains in an intermediate uptrend. Unless we see a daily close back below 0.88180, odds remain tilted in favor of bulls testing the 0.88990 handle. Beyond that, 0.89200-0.89300 may emerge as the next resistance area. On the downside, support is seen at the 0.87850 level initially. A firm break below it will signal weakness and expose the pair to deeper pullback risk.

Market Expectation 

With key short-term stochastics now aligned in a bullish configuration, odds appear stacked in favor of USDCHF. They are likely to extend gains towards 0.88990 and possibly challenge 0.89200 higher up. However, failure to defend 0.88180 on pullbacks could attract some profit booking.

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